U.S.-bound shipments impress in April

April shipments at 950,408 saw a 9.7% gain on an annual basis, which represents the fastest rate of growth going back to February 2016, and comes on the heels of a 8.7% annual gain in April that led to a 17.3% annual increase in the U.S. trade deficit.

The various factors for April’s strong performance, including:-China and European shipments rising 16.4% and 16.1%, respectively;-Chinese customs data reporting a 12% increase in the dollar value of goods shipped in April, with some arriving in May;-shipment gains from Europe mark a return to double-digit growth and its fastest rate of expansion since August 2016; and-imports from South Korea, where the U.S. is threatening to renegotiate the KORUS (U.S. - Korea Free Trade Agreement) saw its second straight month of declines, down 10.6%;

“Fundamentally, the economy was looking pretty strong in April,” said Research Director Chris Rogers. Is it because retailers are convinced they are going to have a really strong spring? That may be the case in the furniture industry. There is also a degree of suppliers wanting to build up their inventories in case President Trump starts implementing [stricter] trade policies with increased tariffs and all the different trade reviews the White House has going at the moment.”